Customer Relationship Management

3.0 CUSTOMER RELATIONSHIP MANAGEMENT PRACTICES

Customer relationship management (CRM) is a term that refers to practices, strategies and technologies that companies use to manage and analyse customer interactions and data throughout the customer lifecycle, with the goal of improving business relationships with customers, assisting in customer retention and driving sales growth. CRM practices systems in MYDIN are designed to compile information on customers across different channels or points of contact between the customer and the company which could include the company's website, telephone, customer service center, direct mail, marketing materials and social media. CRM systems can also give customer facing staff detailed information on customers' personal information, purchase history, buying preferences and concerns.

Customer Relationship Management Division of MYDIN has four different department which are Customer Service Excellence Department, Training Development Department, Data and Analysis Department and Loyalty and Rewards Department. Each of this department play an important role to providing an excellent customer services to MYDIN customers.

        3.1 DEPARTMENT INCHARGE

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Figure 2: Department and Sub-department of CRM MYDIN

1. Training Development

Training is a program that helps employees learn specific knowledge or skills to improve performance in their current roles. Development is more expansive and focuses on employee growth and future performance, rather than an immediate job role. As companies grow and the war for talent intensifies, it is increasingly important that training and development programs are not only competitive, but are supporting the organization on its defined strategic path. This helps reduce any weak links within the company who rely heavily on others to complete basic work tasks. Providing the necessary training creates an overall knowledgeable staff with employees who can take over for one another as needed, work on teams or work independently without constant help and supervision from others. According to Mr Mikaeel, as a Head of Division in MYDIN Headquarters said that training is really important to them. This is because we know that MYDIN have the branches and outlets all over Malaysia. Thus, the management of CRM need to be standardised and do the same practices about the guidelines and procedures to all the outlets. Most of the Training and Development at MYDIN store is internal training because they have their own trainer. The trainer also have certification under MYDIN retail academy or popular known as MYRA. When use their own trainer it will become a clear information and better relationship between staff operation and headquarters.

1. Customer Service Excellence

Customer service efforts are designed to ensure the prompt and efficient delivery of quality products and services to customers, as well as the effective recovery from any service-related issues that may arise. In dealing with customers, communication is essential, whether it is face-to-face, over the phone, via email or, increasingly, through online channels. Generally, customer service excellence department is responsible to look for all communication platform between MYDIN and customers such as via webmaster, social media, call center, form and others. MYDIN website has been designed to be accessible to as many people as possible, including people with disabilities, and regardless of the technology being used to access the site. This communication is regards to any enquiries and complaints pertaining to marketing philosophies which are price, product, place and promotion. It also includes the facilities such as technology, warehousing and logistics.

1. Data and Analysis

CRM data and analytics comprises all programming that analyses data about customers and presents it to help facilitate and streamline better business decisions. CRM analytics can be considered a form of online analytical processing (OLAP) and may employ data mining. As MYDIN company have added new and often faster ways to interact with customers, the opportunity and the need to turn data collected about customers into useful information has become increasingly important. As a result, a number of software in MYDIN have developed products that perform customer data analysis, and analytics is a component of many CRM systems. MYDIN start their data analysis journey with their customers. Using analytical tools they divide their customers up by sales, amount of contact and other useful categories. Then they look at the contents of the various categories and see what they can tell them about their customers such as:

1. Population demographics
2.  Lifestyle trends
3. Attitudes toward and reasons for shopping
4.  The level of loyalty
5. The mix of new versus loyal customers
6. Populations’ aging
7.  Household size
8. Population location & urbanisation
9. Working population distribution by gender and age
10. Population distribution by social class and income levels

1. Loyalty and Rewards

Department of CRM in MYDIN also handles the loyalty and rewards programmes for the customers. Loyalty programs encourage shoppers to return to stores where they frequently make purchases. Some of the incentives may include advanced access to new products, additional discounts or sometimes free merchandise. Customers typically register their personal information with the company and are given a unique identifier, such as a numerical ID or membership card, and use that identifier when making a purchase. For example, The Starbucks (SBUX) Rewards program remains the default case study of how a brand can retain customers through interactive offers. The app operates much like any other rewards program, in that customers earn points to use for future coffee purchases. As for the benefits of MYDIN customers, MYDIN has provide a loyalty programme called card Meriah Loyalty Program. This program encourages members to collect points for every purchase they make. Members are also entitled to enjoy discounts on items of a promotion named Meriah Mania Coupon (MMC) which is held on a weekly basis and relish privileges of partnership programs with other companies and merchants such as 1Malaysia Privilege card, Air Asia, Zoo Negara Malaysia, Gambang Resort, and Canadian Pizza. Thus, these help MYDIN to identify customers’ preferences.